What factors affect the interest rate used to discount the cash flow expected from a financial asset

Q: Relevant cash inflows and outflows in a discounted cash flow analysis are the differences in…

A: True

Q: What is the relationship of financial analysis in the conduct of financial turnaround program

A: Financial analysis is a process that evaluates the performance of the business, projects, or any…

Q: what is the most likely fair value method to utilize the Discountd Cash Flow model?

A: Discounted Cash Flow: The discounted cash flow model,estimates the intrinsic value of a security…

Q: Explain Distribution of Cash from Sale of Asset?

A: The question is based on the concept of distribution of cash to the shareholders , which is simply…

Q: What is the net cash provided by financing activities?

A: Introduction: Statement of cash flows: All cash in and out flows are recorded in statement of cash…

Q: In finance, explain how the DuPont system of analysis breaks down return on assets?

A: EXPLANATION:- Financial performance is calculated by multiplying a corporation's profitability by…

Q: WHAT IS THE NET CASH PROVIDED BY FINANCING ACTIVITIES?

A: Cash flows from financing activities shows all cash inflows and cash outflows from the sources and…

Q: How do you evaluate an asset whose value is predicated on future cash flows?

A: Assets are the resources that are generally used for the purpose of revenue generation by the…

Q: Which is more important from a finance perspective-net income or operating cash flow? What is the…

A: Net income is calculated in the income statement whereas and operating cash flows are calculated in…

Q: Under the principle of cashflow estimation, why it is important that cashflow should be measured on…

A: A cash flow statement determines the net cash inflows and outflows from an organization during a…

Q: what are the operational aspects of the discounted cash flow (DCF) method?

A: What Is Discounted Cash Flow (DCF)?  Limited income (DCF) is a valuation technique used to assess…

Q: If a company has asset classes that include short-term and long-term investments, what criteria…

A: Cash Equivalents The short term investments that can be easily converted into cash in the business…

Q: What are net operating loss carryforwards and how can they provide cash savings?

A:

Q: Which of the following should NOT be taken into account in calculating free cash flow? Select one:…

A: Free Cash Flow = Net income + Depreciation – Change in Working Capital – Capital Expenditure

Q: What is the net cash used in financing activities?

A: Net cash used in financing activities is the cash inflow pertaining to financing activities minus…

Q: What sorts of questions about future cash flows do investors and creditors use the income statement…

A: This question explains about the cash flows , investors and creditors use the income statement

Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…

A: Finance transformation can be defined as a business-wide combination of process, system, and culture…

Q: What is the net cash provided by investing activities?

A: Introduction Cash flow statement: Cash flow statement is the financial statement which reports cash…

Q: How do you evaluate an asset whose value is dependent on future cash flow expectations

A: The Answer :

Q: How do firms finance investments in current assets?

A: A current asset is the assets that only include those assets that can be easily converted to money…

Q: How would discounted cash flow be applied to fair vaue valuations?

A: Valuation of a company means to determine the intrinsic value of a company or the value which the…

Q: What is the significance of the FCF (Free Cash Flow) in the area of valuiation?

A: The cash flow to the business or equity after all debt and other obligations have been paid off is…

Q: What makes current liabilities different from long term liabilities?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: An investment property is considered to generate cash flows that are?

A: Investment property can be defined as the property consisting of land or building which is not…

Q: When an asset is sold at a gain, why is the gain not reported as a cash inflow from operating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Why are cash balances in excess of those needed to financebusiness operations viewed as relatively…

A:

Q: Explain  Cash flows classified as financing activities?

A: Financing activity is a part of cash flow statement. Cash flow from financing activity shows the…

Q: Can you give some explanation of why Amortization Expense is included as a source of cash in a cash…

A: In indirect  method  of cash flow statement  we add back amortization expense  to net income  in…

Q: If a company has asset classes that include short-term and long-term investments, what criteria…

A: Step 1 As per US GAAP, the proper classification should be required in the financial statements for…

Q: How is valuation of any financial asset related to future cash flows?

A: Valuation of a financial asset=Present value of expected future cash flows

Q: What is the principal advantage and the principal disadvantage of the direct method of reporting…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Provide a brief explanation of why depreciation of capital assets is considered in determining…

A: Capital assets are those assets which are held by the business for longer period of time.…

Q: Speculative Balance refers to holding of cash for future investment opportunities.

A: Speculative balance is the method used by the investors of holding money for making future…

Q: Why are the net present value and internal rate of return considered discounted cash flow methods?

A: Net present value is the comparison between the net cash inflows received from a future investment…

Q: . How does one determine the value of any assetwhose value is based on expected future cash flows?

A: If there is an order of anticipated upcoming cash flows, cash flow technique is one of the finest…

Q: Which is more important from a finance perspective - net income or operating cash flow? Why? What is…

A:

Q: . What is the amount of depreciation under cash basis?

A: Cash basis of accounting is one of the basis of accounting, under which all cash receipts are…

Q: Does the value of any asset depends on the cash flows producedby the asset? Why?

A: Asset valuation involves the determination, using book values, of a fair market, or the present…

Q: An investment made in a fixed asset is similar to an investment made by a bank when it lends money.…

A: Fixed asset: Fixed asset is a long-period section of an asset or property that an entity has and…

Q: How is the value of any asset whose value is based on expected future cash flows determined?

A: Answer: When there is a sequence of expected future cash flows, cash flow method is one of the best…

Q: How can we check the balance sheet to determine the extent to which borrowed funds have been used to…

A: Borrowed capital refers to money which is borrowed from others to make an investment in form of…